2nd TD Credit Union Help

My clients are attemping a short sale and they have a HELOC with WESCOM, they have not made a payment in appx 4mos. No NOD filed. WESCOM is threatining to charge off if they don't get a payment made asap. My clients do not have the money to pay them anything but they can eat top ramen for a month and scounge up enough to pay them if it will help the short sale stay in tact. Not sure if this is just a collection tactic or something we should get paid.

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Right on Harry! Ignore them, and definately do NOT have your Sellers send them any more money. If they want to hold up the Sale, after the 1st lienholder has agreed, they will. At that point, you will need to negotiate what they will take as a settlement. HELOC's are not going to go away, so better to deal with it during the Short Sale process...

Thank you so much :-) I have another question now. Can the Credit Union charge off the HELOC before the NOD is filed? I am curious if since a HELOC with a credit union if they have another set of rules. Sorry if is a stupid question. Thanks again all :-)

This is something that can be used by any bank. If it goes to charge off, you are in much worse of a negotiating position with the 2nd. Do whatever can be done to avoid the file being in charge off. In charge off they do not need to follow typical rules. They may ask for 50% of what is owed as minimum payoff. It may be to get more money on the second, but unfortunately your client is at their mercy, because of being delinquent on the debt. This can even be asked for on a HAFA short sale.

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